It's interesting to see what strong reactions this topic raises. To me it's fairly simple:
There are laws on trademarks, patents, copyright, and design rights. Any or all of these rightsmay be broken by "copy" bicycles. The legal issues are usually complex so that only those directly involved will be sure of the facts. Just because a bicycle looks like something familiar doesn't necessarily make it illegal. If it is then it's up to those affected to take action. It is up to us to calmly report it for their attention.
My biggest concern is that cheap copies may be unsafe. Genuine bikes will have passed tests and achieved certification by the EU or whichever national body applies in your location. Criminals who don't care about IP rights, usually equally don't care about their customer's safety.
Finally, I really wish that those incredible talented and dilligent people in China (mostly) who make the copies would apply their talents a bit more creatively, as it would push forward the market for everyone. I know that China is gradually moving in the direction of better enforcement, but in the meantime we have to do the best we can in dealing with the counterfeits. It's very simple to report illegal auctions to Ebay for example, and if more people did so, they might take more action.
To see the amazing results of true creativity, just see what the inventor of Strida has made now!
http://www.foldingforum.com/forum/viewforum.php?f=15